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SharpLink Gaming Sells Fantasy Sports and Sports Game Development Business Units to RSports Interactive

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SharpLink Gaming Ltd. (Nasdaq: SBET) (“SharpLink” or the “Company”) announced that on January 18, 2024, the Company entered into an agreement to sell all of the issued and outstanding shares of common stock or membership interests, as applicable, in its SportsHub/fantasy sports and free to play sports game development business units to RSports Interactive, Inc. (“RSports”) for $22.5 million in an all-cash transaction. Nearly all employees of these acquired business units will also move to RSports to help ensure a seamless transition.

SharpLink further reported that it used approximately $14.9 million of the proceeds from the sale to repay in full all outstanding term loans and lines of credit with its lender; in addition, SharpLink paid approximately $4.5 million to redeem an 8% Interest, 10% Original Issue Discount Senior Convertible Debenture issued to an existing shareholder in connection with a Securities Purchase Agreement signed in February 2023. As a result, the Company is now free of interest bearing debt.

As further detailed in a Current Report on Form 8-K to be filed by the Company with the U.S. Securities and Exchange Commission later today, SharpLink’s Board of Directors considered the following factors, among others, in reaching their decision to approve the sale:

  • With the sale consummated, SharpLink expects to significantly reduce its operating expenses, primarily due to a significant reduction in headcount, lower office lease costs, greatly diminished state licensing requirements, elimination of interest bearing debt service and other resulting cost savings, thereby positioning the Company with the ability to achieve positive cash flow from its remaining performance marketing business on an accelerated basis;
  • The sale significantly strengthens the Company’s working cash position and total shareholders’ equity and provides the capital necessary to extinguish nearly $19.4 million in interest bearing debt – all without having to rely on dilutive equity financings to support the Company’s future growth;
  • The improvement in the Company’s total shareholders’ equity position is expected to enable SharpLink to regain compliance with Nasdaq’s minimum continued listing requirements; and
  • The sale of the Company’s fantasy sports and free-to-play games development businesses positions SharpLink as a pure-play, performance marketing company serving the global sports betting and iGaming industries.

In connection with the sale, Chris Nicholas, the Company’s Chief Operating Officer and a member of the Board of Directors, resigned as an officer and director of the Company, effective immediately.

Commenting on the sale, Rob Phythian, SharpLink’s Chief Executive Officer, stated, “This sale represents a pivotal milestone for SharpLink, allowing us to unlock significant value in our fantasy sports and game development businesses and achieve multiple critical objectives without having to turn to a potentially dilutive equity financing to strengthen our financial footing, regain compliance with Nasdaq, and support our efforts to ultimately create sustainable long-term value for our shareholders. Moreover, we are confident that our fantasy sports and sports game development businesses will continue to thrive and prosper in the great hands of RSports, which has exciting plans to elevate the combined businesses to new heights.”

Continuing, Phythian said, “Our remaining sports betting and iGaming performance marketing business will be more focused and simplified, allowing us to prioritize innovation and organic growth, while empowering us to look for strategic opportunities to strengthen SharpLink’s position as a trusted solutions provider to both current and future business partners.”

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NASCAR launches persistent world on Roblox where players can become racing tycoons

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NASCAR is once again taking the virtual racing world by storm, this time with the launch of “NASCAR Tycoon” on Roblox created by Dubit.

Building on the success of its previous “NASCAR Speed Hub,” this new experience promises to deliver an even more immersive and interactive NASCAR world.

Developed in partnership with the renowned metaverse studio Dubit, “NASCAR Tycoon” allows players to dive deep into the management and racing aspects of NASCAR, offering a unique blend of strategy and high-speed thrills in a distinctly Roblox-native way.

Players will have the opportunity to jump in the driver’s seat of cars styled after NASCAR’s Next Gen Cup Series vehicles, competing against each other and managing teams in thrilling races. Earning fame and fortune as they build their virtual tycoon, players can make passive income while they play. As players progress in “NASCAR Tycoon,” they will unlock exclusive perks such as building their own NASCAR racing teams, expanding their garages, collecting new cars, accessing customizations and attracting sponsors.

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The launch comes hot on the heels of recent Fortnite activations and follows the debut of NASCAR in Jailbreak and NASCAR Speed Hub last year – a virtual environment built by Dubit, for players to race around tracks linked to real-world races.

“We’re thrilled to launch ‘NASCAR Tycoon’ on Roblox, developed in partnership with Dubit, marking a key milestone in our ongoing efforts to authentically engage with the Roblox community,” said Nick Rend, VP of Interactive and Emerging Platforms at NASCAR. “This initiative is about more than reaching new audiences; it’s about deepening our connection on a platform where we see tremendous potential. By blending the excitement of NASCAR with the interactive and dynamic environment of Roblox, we’re enhancing traditional fandom in ways that are engaging, fun, and distinctly forward-looking.”

With over 300 million monthly active users, Roblox is ripe with opportunities for sporting organisations like NASCAR and offers a chance to engage with audiences in an immersive and interactive environment.

Andrew Douthwaite, Chief Commercial Officer at Dubit, shares his excitement: “We’re thrilled to bring the next phase of NASCAR to life on Roblox, building on the success of previous activations. NASCAR Tycoon allows Roblox players to experience the excitement of NASCAR racing like never before, blending the strategic elements of team management with the adrenaline-pumping action on the track. It has been a true joy working with such a forward-thinking, iconic sports brand in NASCAR, and we look forward to continuing to push the boundaries together”

Dubit has created Roblox activations, virtual merchandise ranges and experiences for global brands including Unilever, Samsung, Reckitt, Kraft, H&M and adidas.

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“NASCAR Tycoon” is now available on Roblox.

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NASCAR unveils first step into the Fortnite ecosystem with custom Rocket Racing tracks inspired by its iconic events and venues

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NASCAR unveils first step into the Fortnite ecosystem with custom Rocket Racing tracks inspired by its iconic events and venues

 

Today, NASCAR, America’s most popular motorsport, has officially entered the Fortnite ecosystem – announcing its debut with a one-of-a-kind, high-octane racing experience built in Rocket Racing.

Developed in partnership with award-winning UK metaverse studio, Karta, the experience launches with a Chicago Street Course map, styled on the real NASCAR Chicago Street Race taking place this Sunday 7th July, merging the thrill of NASCAR racing with the dynamic creativity of the Fortnite ecosystem.

With the first Chicago Street Map, players navigate multiple routes, master the art of speed, drift and avoid obstacles in intense multiplayer races or solo time trials.

Debuting ahead of the real-life Chicago Street Race, NASCAR’s official launch on Fortnite brings its second annual event in the center of one of the world’s greatest cities, into the Fortnite world. The map gives NASCAR fans, and players of all levels who may have never interacted with the sport, the chance to get closer to the real event than ever before – setting it apart from typical Rocket Racing maps.

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With this fun experience aimed at gamers of all levels, NASCAR’s move into the Fortnite ecosystem isn’t just a one-time event while the Chicago race takes place. NASCAR is setting its sights on a permanent fixture on the platform, with the Chicago map marking the start of a long-term racing experience for players to continuously visit. Looking ahead at the NASCAR calendar, fans of America’s No. 1 form of motorsports and the Fortnite community can get excited, as NASCAR eyes wider plans to add more virtual recreations on the platform.

“NASCAR has always been about pushing boundaries and connecting with fans in exciting ways,” said Nick Rend, Managing Director of Esports & Gaming at NASCAR. “Fortnite provides the perfect platform to engage a global audience, blending the intensity of NASCAR racing with the immersive world of Fortnite. Karta, with their incredible creativity, attention to detail and innovative approach, were the perfect partners to help us bring this vision to life. We wanted to build something with longevity for both diehard NASCAR enthusiasts and the wider Fortnite community and we think we have succeeded with just that.”

Erik LondrĂ©, CEO of Karta, added, “Working with an icon of motorsports like NASCAR  has been a dream come true. Our goal was to capture the essence of NASCAR racing – the speed, the strategy, the adrenaline – and inject it with a dose of Fortnite fun. The result is something truly special – a high-octane, visually stunning racing experience that we know players will love.”

Karta is an award-winning metaverse studio renowned for creating engaging virtual gaming experiences for global brands. Karta has established itself as a leader in creating accessible and impactful brand experiences within the metaverse across gaming, music and esports.

Since its inception in July 2021, Karta has collaborated with a diverse range of global brands, including Nicki Minaj, BLACKPINK, TWICE, Amazon Music, McDonald’s, Spotify, and Hugo Boss, solidifying its position as a trailblazer in the ever-evolving landscape of metaverse entertainment.

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NZXT and FlyQuest Forge Strategic Partnership Empowering Professional Gamers and Content Creators

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NZXT, a leader in PC gaming components, products and prebuilts, is thrilled to announce a partnership with FlyQuest, a premier esports organization. This collaboration designates NZXT as the “Official PC Partner” for FlyQuest’s LCS, NACL, RED VALORANT, RED CS2 teams, and their content creators.

NZXT and FlyQuest share a vision that gaming is for everyone. NZXT will provide FlyQuest teams and creators with high-performance gaming desktops from their Flex gaming PC subscription service. NZXT Flex provides the flexibility of no long-term commitments, 24/7 technical support and equipment upgrades every two years at an affordable monthly rate. This collaboration guarantees that FlyQuest athletes and creators such as Fiona Nova and Basil, have access to the best technology available. It highlights their shared commitment to empowering gamers and creators to reach their full potential by providing easy access to the latest, high-performance hardware, enhancing their in-game performance.

In the spirit of enabling gamers who aspire to be the best, FlyQuest’s NACL team will be officially branded as FlyQuest NZXT. NZXT’s commitment to FlyQuest’s NACL team extends beyond branding. They are dedicated to providing the resources and support necessary to develop the talent for FlyQuest’s NACL team. NZXT and FlyQuest want to help these aspiring players advance to the LCS and achieve success by fostering an environment where players can thrive. Supporting players in the NACL is crucial for the health of the League of Legends Esports, as it ensures a strong pipeline of talent, elevating the level of competition and making it more exciting for both spectators and players alike. Investing in this talent development is an important goal for both organizations, reflecting their commitment to the future of esports.

NZXT will also lend its brand name across FlyQuest’s teams and facilities, including jersey placement for FlyQuest RED, LCS, and NACL teams. Additionally, FlyQuest’s training center and boot camp will be named the NZXT Boot Camp and the center will be outfitted with NZXT PCs, providing each of FlyQuest’s teams with the best equipment for training and competition.

“It is unique to find a partner who can help every facet of your organization,” said Brian Anderson, CEO of FlyQuest. “On top of providing top-tier gaming units for our competitive success, NZXT will allow FlyQuest to level up all aspects of our business, from creators to content.”

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“We believe that anyone can be a PC gamer and strive to deliver the best gaming experience possible,” said Johnny Hou, Founder and CEO of NZXT. “Our partnership with FlyQuest is a testament to our commitment to this vision. We’re excited to support FlyQuest’s mission and look forward to achieving great things together.”

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